Professional Documents
Culture Documents
Banking and Static Awareness Capsule For RBI Grade B IBPS PO Mains 2019 PDF
Banking and Static Awareness Capsule For RBI Grade B IBPS PO Mains 2019 PDF
Contents
STATIC GA: AWARDS & FIELDS .............................................................................................................................................3
Topic 1: CM/Governors/Wildlife Santuaries/National Parks / Power Plants in India ..............................................................3
Topic 2: Upcoming Important Sport Events ..........................................................................................................................7
ICC World Cup Cricket Venue: ..............................................................................................................................................7
Topic 3: The Headquarters of the UN Organizations .............................................................................................................8
Topic 4: A Brief on the Census 2011 .....................................................................................................................................8
Topic 5: Current Office Holders List ......................................................................................................................................8
Topic 6: Important Ports in India ..........................................................................................................................................9
Topic 7: The Most Famous Temples in India .........................................................................................................................9
Topic 8: List of the Important Airports in India .....................................................................................................................9
Topic 9: What are the names of the Borders/ Boundary Lines? .......................................................................................... 10
Topic 10: Stock Exchanges around the World ..................................................................................................................... 10
Topic 11: Dams in India ...................................................................................................................................................... 11
Topic 12: Classical Dances & Folk Dances In India ............................................................................................................... 11
Topic 13: The Headquarters of the important Public-Sector Undertakings.......................................................................... 12
Topic 14: Nick Names of Important Indian Places ............................................................................................................... 12
Topic 15: Important Defence Exercise Conducted in the World .......................................................................................... 13
Topic 16: Stadiums Around the World ................................................................................................................................ 13
Topic 17: List of Indian Cities on Rivers Banks ..................................................................................................................... 14
BANKING AWARENESS ....................................................................................................................................................... 15
Topic 1: Reserve Bank of India & its Functions .................................................................................................................... 15
Topic 2: Policy Rates decided by the RBI ............................................................................................................................. 16
Topic 3: Banking Regulation Act 1949|Schedule Banks| Other Types of Banks ................................................................... 16
Topic 4: What are the different types of accounts that can be opened in a Bank? .............................................................. 16
Topic 5: Negotiable Instrument Act and Cheques ............................................................................................................... 17
Topic 6: Financial Inclusion and the initiatives launched to achieve it ................................................................................. 18
Current Status of the Pradhan Mantri Jan - Dhan Yojana as on 03rd July 2019.................................................................... 19
Topic 7: All about the Priority Sector Lending Norms .......................................................................................................... 19
Topic 8: Financial Market| Importadnt Points on Money Market, Capital Market & their Instruments ............................... 21
Topic 9: All about the DICGC .............................................................................................................................................. 22
(Deposit Insurance & Credit Guarantee Corporation of India) ............................................................................................ 22
Topic 10: NPAs & SARFAESI Act .......................................................................................................................................... 23
Topic 11: A Brief on ATMs in India ...................................................................................................................................... 23
Topic 12: Currency System in India ..................................................................................................................................... 24
Topic 13: A close look at the Prompt Corrective Action (PCA) ............................................................................................. 24
Topic 14: All about the Products of NPCI ............................................................................................................................ 25
Topic 15: Small Finance Banks & its Headquarters .............................................................................................................. 25
Topic 16: Payments Banks & its Headquarters .................................................................................................................... 26
Topic 17: What are the Risks in Banking Sector?................................................................................................................. 26
Topic 18: What are the BASEL-3 Norms & a brief on the 3 Pillars of Basel? ......................................................................... 26
Topic 19: Most Important Miscellaneous Banking Terms .................................................................................................... 27
Topic 20: How the amount can be transferred from one Bank A/c to the other? ................................................................ 28
Topic 21: What are the types of Accounts that can be opened by Foreign (Person) in India? .............................................. 28
Topic 22: A Brief on CAMELS rating for Domestic Banks? .................................................................................................... 29
Topic 23: BANKING OMBUDSMAN SCHEME 2006 ............................................................................................................... 29
Topic 24: NBFC OMBUDSMAN SCHEME ............................................................................................................................. 29
Topic 25: What is Base Rate, MCLR & Other rates of Lending? ........................................................................................... 30
Topic 26: What is Reverse Mortgage Loan? ........................................................................................................................ 30
Topic 27: What is Hypothecation & Pledge? ....................................................................................................................... 30
Topic 28: What is NBFC & how it differs from Banks? ......................................................................................................... 30
Complete list of 9 Union Territories: ICC Men Cricket World Cup 2019 (England); 2023
Union (India)
Capital CM Lt. Governor
Territories FIFA (Women) World Cup 2019 (France) → Dare to
Andaman and Shine
Port Blair NA D K Joshi ITTF Table Tennis World Cup 2018 (London)
Nicobar Island
V.P. Singh
Chandigarh Chandigarh NA
Badnore
Dadra and
Silvassa NA Praful Patel
Nagar Haveli
Daman and Diu Daman NA Praful Patel
Arvind
Delhi Delhi Anil Baijal
Kejriwal
Radha Krishna
Ladakh NA NA
Mathur
Lakshadweep Kavaratti NA Farooq Khan
Jammu and Girish Chandra
NA NA
Kashmir Murmu
V.
Puducherry Pondicherry Narayan Kiran Bedi
asamy
Topic 2: Upcoming Important Sport Events ICC World Cup Cricket Venue:
ODI: (One day International):
Summer Olympics Japan (2020); Paris (2024), Los 1. England – 2019|2. India – 2023
Angles (2028) T20 World Cup: Australia - 2020.
Winer Olympics Pyeong Chang, South Korea
(2018); Beijing China (2022) FIFA (Football) World Cup venue:
Common Wealth Queensland, Australia (2018); 2018: Russia|2022: Qatar
Games London (2022) Commonwealth Games venues: 2018 – Gold Coast (Australia).|
Asian Games Indonesia (2018); Hangzohu, 2022: Birmingham (England)
China (2022)
FIFA Russia (2018); Qatar (2022) Olympics Games venues:
Common Wealth Youth Brahmas (2017); Belfast (2021) 2016 Summer: Rio de Janeiro (Brazil)
Games 2018 winter: Pyeongchang (South Korea)
Common Wealth Lima, Peru (2018) 2020 summer: Tokyo (Japan)
Weightlifting 2022 Winter: Beijing (China)
Championship 2024 Summer: Paris (France)
BANKING AWARENESS
Internal Ombudsman Scheme 2018 Introduced For Scheduled (I), New Delhi (II), Patna, Thiruvananthapuram, Dehradun,
Commercial Banks Ranchi, Raipur, and Jammu.
The Reserve Bank of India had, in May 2015, advised all
public-sector and selected private and foreign banks to RBI Notifies Amended Note Refund Rules
appoint Internal Ombudsman (IO) as an independent RBI released new guidelines through a gazette notification for
authority to review complaints that were partially or wholly all notes which were introduced post note ban, or notes which
rejected by the respective banks. were introduced as part of the Mahatma Gandhi New Series.
The IO mechanism was set up with a view to strengthen the With this, the RBI has ended the lack of clarity over the
internal grievance redressal system of banks and to ensure exchange of the Rs 2000 or Rs 200 currency notes, introduced
that the complaints of the customers are redressed at the post demonetisation. As per the new Reserve Bank of India
level of the bank itself by an authority placed at the highest (Note Refund) Amendment Rules, 2018, "the undivided area of
level of bank’s grievance redressal mechanism so as to the single largest piece of the note" for a damaged Rs 2000 note
minimize the need for the customers to approach other must be 88 square cm for a full refund, and 44 square cm for
fora for redressal. half refund. The Rs 2000 note is 109.56 square cm in dimension.
RBI has reviewed the arrangement and issued revised For a damaged Rs 200 note, the criteria is 78 square cm for a
directions under Section 35 A of the Banking Regulation full refund, and 39 square cm for half refund.
Act, 1949 in the form of ‘Internal Ombudsman Scheme,
2018’. The Scheme covers, inter-alia, appointment/tenure, Topic 1: Reserve Bank of India & its Functions
roles and responsibilities, procedural guidelines and i. RBI established on April 1, 1935 under RBI Act 1934
oversight mechanism for the IO. (recommendations of John Hilton Young Commission
All Scheduled Commercial Banks in India having more than 1926 – called Royal Commission on Indian Currency &
ten banking outlets (excluding Regional Rural Banks), are Finance), is the central bank of the country & was
required to appoint IO in their banks. The IO shall, inter nationalized w.e.f 01st Jan 1949.
alia, examine customer complaints which are in the nature ii. Originally it was a shareholders’ bank which was taken
of deficiency in service on the part of the bank, (including over by the Central Govt. under Reserve Bank (Transfer of
those on the grounds of complaints listed in Clause 8 of the Public Ownership) Act 1948 (paid up capital Rs. 5 cr).
Banking Ombudsman Scheme, 2006) that are partly or iii. RBI’s central office is in Mumbai.
wholly rejected by the bank. The implementation of IO
Scheme, 2018 will be monitored by the bank’s internal Functions of RBI
audit mechanism apart from regulatory oversight by RBI. Issuance of currency: RBI is the authority in India to issue
currency notes (called bank notes) under signatures of
Governor. (One rupee note called currency note is issued by
the Central Govt. & signed by Finance Secretary). The stock
of currency is distributed with the help of currency chests
spread all over the country.
Banker to Govt.: RBI transacts govt. business & manages
public debt. SBI or any other bank is appointed Agent where
RBI does not have office. It provides Ways & Means
advances to Govt.
Bankers’ bank: It keeps a part of deposits of commercial
banks (as CRR) & acts as lender of last resort by providing
financial assistance to banks. It provides export credit
refinance, Liquidity Adjustment Facility & MSF.
Controller of Banks: An controller of banks by including the
banks in 2nd Schedule of the Act. It issues directions, carries
inspection (on-site as well as off-site) & exercises
management control.
Controller of credit: RBI can fix interest rates (including Bank
21 Banking Ombudsman centres:
Rate) & exercise selective credit controls. Various tools such
Currently, there are 21 Banking Ombudsman centres
as change in cash reserve ratio, stipulation of margin on
operating in the country. The 21 centres are located in
securities, directed credit guidelines etc. are used for this
different cities viz. Ahmedabad, Bengaluru, Bhopal,
purpose. It also carries sale & purchase of securities which
Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad,
are known as open market operations.
Jaipur, Kanpur, Kolkata, Mumbai (I), Mumbai (II), New Delhi
Business Correspondent
Current Status of the Pradhan Mantri Jan - Dhan Yojana as on 03rd July 2019
Topic 7: All about the Priority Sector Lending Norms Overall PSL Target for Domestic Bank/Foreign Bank with
It means provide credit to the needy sectors of the society. The more than 20 Branches: 40% of ANBC.
sectors are: Overall PSL Target for Foreign Bank with less than 20
• Agriculture • Micro & Small Enterprises Branches: 40% of ANBC to be achieved in phased manner
• Education • Housing
• Export • Weaker Sections 2017-18 36
• Social Infrastructure • Renewable Energy 2018-19 38
Targets under PSL 2019-20 40
Agriculture: 18% of ANBC (Adjusted Net Bank Credit). Out of
this 18%, a target of 8% of ANBC is for Small & Marginal Categorization of MSME according to MSME ACT 2006
Farmers, to be achieved in a phased manner i.e., 7% by Manufacturing Sector (Goods)
March 2016 & 8% by March 2017.
Weaker Sections: 10 % of ANBC. The government has given a new turnover based
Micro Enterprises: 7.5% of ANBC has been prescribed for classification of MSMEs in February 2018. As per this new
Micro Enterprises, to be achieved in a phased manner i.e. classification, the MSMEs are categorized in term of
7% by March 2016 & 7.5% by March 2017. business turnover. This is in place of the previous
Marginal Cost Based Lending Rate Topic 27: What is Hypothecation & Pledge?
RBI introduced MCLR w.e.f. 1.4.2016 to determine Base Rate Mortgage: As per section 58 of Transfer of Property Act
by banks to improve the efficiency of monetary policy 1882, mortgage is transfer of interest in specific immovable
transmission. property for the purpose of securing the payment of money
All rupee loans sanctioned & credit limits renewed w.e.f. advanced or to be advanced by way of loan, an existing or
01.04.16 to be priced w.r.t. MCLR. It will be internal future debt or the performance of an engagement which
benchmark. may give rise to pecuniary liability.
The MCLR comprises of (a) Marginal cost of funds; (b)
Negative carry on account of CRR; (c) operating costs; (d) Topic 28: What is NBFC & how it differs from Banks?
Tenor premium. Non-Banking Financial Company (NBFC) is a company
Marginal Cost of funds (MCF): It has 2 components (a) registered under the Companies Act, 1956 engaged in the
Marginal cost of borrowings (b) return on networth. business of loans & advances, acquisition of
By using MCF, it will be calculated as: Required CRR × shares/stocks/bonds/debentures/securities issued by Govt.
(marginal cost) / (1-CRR) or local authority or other marketable securities of a like
nature, leasing, hire-purchase, insurance business, chit fund
Exemptions from MCLR business.
loans under schemes of Govt. of India wherein banks have NBFCs lend & make investments & hence their activities are
to charge interest rate as per the scheme. akin to that of banks; however there are a few differences as
Working Capital Term Loan, Funded Interest Term Loan etc. given below:
as part of rectification/restructuring package. a) NBFC cannot accept demand deposits;
Loans under various refinance schemes of Govt. of India or b) NBFCs do not form part of the payment & settlement system
any Govt. Undertaking wherein banks charge interest at the & cannot issue cheques drawn on itself;
rates prescribed under the schemes. c) Deposit insurance facility of Deposit Insurance & Credit
The following loans can be priced without being linked to Guarantee Corporation is not available to depositors of
MCLR : NBFCs, unlike in case of banks.
a) Loan to depositors against their own deposits. Register with RBI:
b) Loan to banks’ employees & Chief Executive Officer/Whole A company incorporated under the Companies Act, 1956 &
Time Directors. desirous of commencing business of non-banking financial
c) Loans linked to a market determined external benchmark. institution as defined under Section 45 I(a) of the RBI Act,
d) Fixed rate loans. In case of hybrid loans where the interest 1934 should comply with the following:
rates are partly fixed & partly floating, interest rate on the a) It should be a company registered under Section 3 of the
floating portion should adhere to the MCLR guidelines. companies Act, 1954
b) It should have a minimum net owned fund of Rs 200 lakh.
Topic 26: What is Reverse Mortgage Loan? Deposits in NBFC:
The scheme of reverse mortgage has been introduced for Presently, the maximum rate of interest an NBFC can offer is
the benefit of senior citizens owning a house but having 12.5%. The interest may be paid or compounded at rests not
inadequate income to meet their needs. Some important shorter than monthly rests.
features of reverse mortgage are: NBFCs are allowed to accept / renew public deposits for a
A homeowner who is above 60 years of age is eligible minimum period of 12 months & maximum period of 60
for reverse mortgage loan. It allows him to turn the equity in months. They cannot accept deposits repayable on demand.
his home into one lump sum or periodic payments mutually The deposits with NBFCs are not insured.
agreed by the borrower & the banker. The repayment of deposits by NBFCs is not guaranteed by
RBI.
Topic 37: What are the Sectors in the Indian Points to Remember
Special kind of paper is required for the printing of bank
Economy?
notes & non-judicial stamps. This paper is produced in
Indian Economy is normally categorized into three sectors
special Security Paper Mill which was established in 1968
namely - 1. Primary Sector 2. Secondary Sector 3.
at Hoshangabad, Madhya Pradesh.
Tertiary Sector
2 currency note printing presses owned by GOI & 2 are
Primary Sector: Primary Sector is directly dependent on
owned by RBI , through the Bharatiya Reserve Bank Note
environment for manufacture & production. For example,
Mudran Ltd. (BRBNML). GOI presses are at Nasik (Western
agriculture, mining, farming etc.
India) & Dewas (Central India). RBI presses are at Mysore
Secondary Sector: Secondary Sector adds value to the proud
(Southern India) & Salboni (Eastern India).
by transforming raw materials into valuable products. For
example, processing & construction industries.
34 www.bankersadda.com | www.sscadda.com | www.careerpower.in | Adda247 App
Banking Awareness Capsule for RBI Grade-B & IBPS PO Mains 2019
Coins are minted in four mints owned by GOI which are
located at Mumbai, Hyderabad, Calcutta & NOIDA. Topic 41: Important Financial, Economics & Budget
Terms
Topic 39: What is the Mudra Scheme? Fiscal Responsibility and Budget Management Act: The Act
a) MUDRA stands for Micro Units Development & Refinance is an attempt to make the Government adhere to a phased
Agency Ltd. plan to reduce fiscal deficit, which denotes an excess of
b) Financial institution set up by GOI for development & expenditure over revenue.
refinancing micro units enterprises. Dividend Distribution Tax: This is a tax levied on companies
c) The purpose is to provide funding to the non-corporate that pay out dividends to its shareholders, i.e. share a
small business sector through various Last Mile Financial portion of earnings with them.
Institutions like Banks, NBFCs and MFIs. Venture Capital Funds: These are funds that invest in
d) It be responsible for refinancing all Last Mile Financiers such startups, a financially riskier proposition than investing in
as Non-Banking Finance Companies, Societies, Trusts, established companies.
Section 8 Companies, Co-operative Societies, Small Banks, Securities Transaction Tax: It is a tax on all transactions
Scheduled Commercial Banks and Regional Rural Banks. done over the stock exchanges involving securities such as
e) Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), shares, derivatives, and equity-linked mutual funds.
MUDRA has already created its initial products / schemes. Capital Gains Tax: It is a tax on the gains that ensue when an
The financial limit for these schemes are:- asset is sold for a price higher than what it was bought for.
Shishu: covering loans upto Rs. 50,000/- Ad Valorem Tax: This is charged as a percentage of the value
Kishor: covering loans above Rs. 50,000/- and upto 5 lakhs of a good or service, not at a specific rate per unit.
Tarun: covering loans above Rs. 5 lakhs to 10 lakhs Advance Pricing Agreement (APA): It is an agreement
f) Pradhan Mantri Mudra Yojana is a Government of India between a taxpaying entity and the taxman that indicates
scheme, which enables a small borrower to borrow from how the former will price transactions with its associates.
banks, MFIs, NBFCs for loans upto 10 lakhs for non-farm Fiscal Consolidation: The term refers to the things a
income generating activities. Generally, loans upto 10 lakhs Government does to maintain good fiscal health — cut debt
issued by banks under Micro Small Enterprises is given and wasteful expenditure and improve revenue
without collaterals. opportunities.
g) Shri Mohammad Mustafa is the Head currently. Current Account Deficit: It is a trade measure that shows
the value of a country’s imports of goods and services to be
Topic 40: Headquarters of the International higher than the value of its exports.
Financial Organizations Bear market: A period during which the majority of
securities prices in a particular market (such as the stock
Name of the Organization HQ market) drop substantially.
IMF International Monetary Fund Washington, DC Bull market: A period during which the majority of securities
IBRD International Bank for Washington, DC prices in a particular market (such as the stock market) rise
Reconstruction and Development substantially.
Inflation risk: The risk that the purchasing power of the
IFC International Finance Corporation Washington, DC
future value of assets or income will be lower due to
IDA International Development Washington, DC
inflation.
Association
Interest rate risk: Risk of gain or loss on a security due to
ICSID, International Centre for Washington, DC
possible changes in interest rate levels. When interest rates
Settlement of Investment Disputes rise, the market value of a debt security will fall, and vice
MIGA Multilateral Investment Washington, DC versa.
Guarantee Agency Direct and Indirect Taxes: Direct taxes are the one that fall
World Trade Organization (WTO) Geneva directly on individuals and corporations. For example,
AFDB African Development Bank Abidjan income tax, corporate tax etc. Indirect taxes are imposed on
ADB Asian Development Bank Manila goods and services. They are paid by consumers when they
EBRD European Bank for London buy goods and services. These include excise duty, customs
Reconstruction & Development duty etc.
BIS Bank of International Settlements Basel Customs Duty: These are levies charged when goods are
EIB European Investment Bank Luxembourg imported into, or exported from, the country, and they are
AACB African Association of Central Dakar, Senegal paid by the importer or exporter. Usually, these are also
Banks passed on to the consumer.
IIB International Investment Bank Moscow, Russia
SEACEN South East Asian Central Banks Kuala Lumpur, interest payments. It tells how much of the Government's
Centre Malaysia